Pioneer Corp. said it had secured up to ¥60 billion ($540 million) with a planned share issue to Baring Private Equity Asia — a lifeline after its bet on car navigation systems to survive tumultuous times flopped.
Pioneer's reliance on car GPS and audio systems has backfired amid fierce competition and higher development costs as automakers demand systems with smartphone connectivity and sophisticated mapping technology needed for self-driving cars.
The deal — potentially worth more than the Japanese firm's current market value — will see Pioneer issue about ¥50 billion to ¥60 billion worth of stock to the Hong Kong-based fund by the end of December.